Bailout Watch 547: Michigan Pols Look for GM Plant Closing Reprieve
Not much info here, but the story’s major thread is clear enough. After discovering that Massachusetts Congressional Representative Barney Frank won a reprieve for a local GM operation, Michigan Reps are looking for some of the same non-action for their constituents. The Detroit Free Press is uncharacteristically tight-lipped (uninformed?) about the who, when and where—although we know the what and why (staying elected). “Michigan members of Congress summoned the chief executive of General Motors Corp. to a meeting next week after the company bowed to pressure from U.S. Rep. Barney Frank and delayed the closing of a parts warehouse in his district.” The Detroit News is more forthcoming, indicating that it’s the entire Michigan congressional delegation asking for various stays. This after Dingell’s open letter to Fritz on the first . . .
As a Congressman who has fought hard to preserve and promote American manufacturing, with particular regard for the domestic automakers General Motors (GM), Ford, and Chrysler, I am troubled to learn that GM plans to close its Willow Run Transmission Plant in Ypsilanti Township, Michigan.
As you well know, this plant was once known as the “Arsenal of Democracy” for having built the famous B-24 bomber that helped the U.S. and its allies win the Second World War. More recently, the support of the Michigan Economic Development Corporation, tax abatements by Ypsilanti Township, and an investment of $557 million by GM itself have allowed the Willow Run facility to remain an international leader in the efficient assembly of quality six-speed transmissions. When measured against GM’s internal quality scorecard, the Willow Run team assembles GM’s highest-rated transmission.
The bottom line: the people in charge of federal funds are ignoring federally-funded GM’s bottom line, dooming the zombie automaker to extinction. Well duh.
More by Robert Farago
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Maybe Mr. Dingell hopes we'll restart the B-24 program, and really relive the glory days?! Say, at GM maybe we should just call off this whole negative "closing the plants" idea, recall the 450,000 workers lost over the last 20 years, push 4 million cars out the door annually, and declare victory over the recession? I mean, if the bailouts are about saving jobs, let's not just save them, let's create them! @Smegley: I agree; buying a GM is a vote for these clowns.
I think Michigan can make the case to GM to keep plants operating there. They can weight the economics of operating in Michigan vs elsewhere, and make concessions to GM. In the end, Michigan has to persuade GM it is more economical to be in Michigan than elsewhere. It may take some state subsidy, but this is doable. Let the discussions between Michigan and GM begin.